Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2016

Sales and Use Tax Annotations

295.0000 GROSS RECEIPTS

Annotation 295.0422

(a) GENERAL

295.0422Party Organizer. A taxpayer is in the business of organizing parties and special events for a fee at which meals, balloons, party favors, or entertainment is furnished to clients. The taxpayer subcontracts the meals to a caterer and pays tax reimbursement to the caterer. It also pays tax reimbursement on the other tangible personal property it purchases (e.g., balloons). The taxpayer is the retailer of the tangible personal property furnished, including meals the taxpayer purchases from a caterer.

The portion of the taxpayer's fee which is related to the sale of tangible personal property including the meals is subject to tax, while the portion attributable to entertainment is not subject to tax. 4/17/95.

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